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2016 (7) TMI 271 - ITAT VISAKHAPATNAMRevision u/s 263 - non deduction of tds towards rent and hire a charge - A.R.submitted that the assessee has incurred the expenditure towards rent and hire a charge which was paid before the end of the financial year - Held that:- We find force in the arguments of the assessee for the reason that in view of the special Bench decision of ITAT, Visakhapatnam in the case of Merilyn Shipping & Transporters(2012 (4) TMI 290 - ITAT VISAKHAPATNAM ) no disallowance can be made u/s 40(a)(ia) of the Act, once particular expenditure has been paid during the same financial year. In the present case on hand, the assessee has filed a paper book containing financial statements for the relevant financial year. On perusal of the financial statements, we noticed that the assessee has incurred expenditure under the head rent and hire charges and the same have been completely paid during the same financial year. Even for a moment, assumed that the assessment order is erroneous, it is not prejudicial to the interest of revenue, as the issue raised by the CIT towards disallowance u/s 40(a)(ia) of the Act is not disallowable, because the assessee has proved that the impugned expenditure is paid during the same financial year. Therefore, we are of the view that the assessment order passed by the A.O. is not erroneous, in so far as it is prejudicial to the interest of the revenue, as there is no loss of revenue on account of non compliance with TDS provisions as the expenditure is not disallowable under sec. 40(a)(ia) of the Act in view of ITAT, Special Bench decision. The CIT without appreciating the facts revised the assessment order. Hence, we set aside the order passed by the CIT u/s 263 of the Act and restore the order passed by the A.O. u/s 143(3) of the Act. - Decided in favour of assessee
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